greetings dear chaps!
Quite a few clients articulate to me interest regarding what basis rate swap is.
The meaning of basis rate swap is a type of swap in which two parties swap variable interest rates based on different money markets. This is usually done to limit interest-rate risk that a company faces as a result of having differing lending and borrowing rates.
For example, a company lends money to individuals at a variable rate that is tied to the London Interbank Offer (LIBOR) rate but they borrow money based on the Treasury Bill rate. This difference between the borrowing and lending rates (the spread) leads to interest-rate risk. By entering into a basis rate swap, where they exchange the T-Bill rate for the LIBOR rate, they eliminate this interest-rate risk.
The Forex trading » study of currency exchanger
explaining retail ECN forex server rating, comparison and evaluation term
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Posted 8 months ago #
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when analyzing the current market situation, you should pay no mind to processes connected to the secondary sector, for instance the fact that ISK-AUD rate will be affected by the lessening in the oil prices, and because of that will go down, and concentrate on trade ing logic like the effect of the market's movements on the Iceland Krona in Australia.
Posted 8 months ago #
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